Net Operating Losses Can Be Increased by Which of the Following

question 24

Multiple Choice

Net operating losses can be increased by which of the following?

• A) fteft losses.
• B) Business casualty losses.
• C) Unreimbursed employee business expenses.
• D) All of the above.

---

Definitions:

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance premiums, remaining constant regardless of variations in business activity.

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials or labor directly tied to production volume.

Break-even Sales

The point at which total sales equal total expenses, resulting in no profit or loss.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.